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 FOR IMMEDIATE RELEASE 2002-37 SEC ANNOUNCES ACTIONS FOR ISSUERSIN LIGHT OF INDICTMENT OF ARTHUR ANDERSEN LLPWashington, DC, March 14, 2002 The Securities and
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Exchange Commission announced today that it has approvednecessary and immediate regulatory actions to assure acontinuing and orderly flow of information to investors andU.S. capital markets and to minimize any potentialdisruptions that may occur as a result of the indictment ofArthur Andersen LLP. The Commission has requested and received assurancesfrom Andersen that it will continue to audit financialstatements in accordance with generally accepted auditingstandards (GAAS) and applicable professional and firmauditing standards, including quality control standards.Andersen has also told the Commission that if it becomesunable to continue to provide those assurances, it willadvise the Commission immediately. Issuers whose audits are completed by Andersen afterMarch 14, 2002, must obtain from Andersen certainrepresentations concerning audit quality controls, includingrepresentations regarding the continuity of Andersenpersonnel working on the audit, the availability of nationaloffice consultation, and the availability of personnel atforeign affiliates of Andersen to conduct relevant portionsof the audit. So long as Andersen continues to be in aposition to provide those assurances, the Commission willcontinue to accept financial statements audited by Andersenin filings. In addition, the Commission has taken action for thoseAndersen clients that are unable to receive services fromAndersen to complete their audits or who choose not to haveAndersen complete audits that currently are in process. TheCommission will require adherence to existing filingdeadlines, but will accept filings that include unauditedfinancial statements from any issuer unable to providetimely audited financial statements because of the cessationof its audit relationship with Andersen. Issuers electingthis alternative will generally be required to amend theirfilings within 60 days to include audited financialstatements. The Commission has taken similar actionsregarding reviews of interim financial statements. The relief is intended to minimize disruption to theU.S. capital markets and the affected issuers while thoseissuers complete certain pending or future filings,offerings and other activities. This relief is proceduralin nature, is of finite duration, and is intended solely to
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